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Goldwater warns Glendale about proposed arena-management fee

May 23, 2012, 6:47 PM EDT

Jobing.com Arena

Earlier today we wrote about the Goldwater Institute and pondered whether the taxpayer watchdog group would legally challenge the $17 million arena-management fee that the City of Glendale has tentatively approved payable to the Phoenix Coyotes to help facilitate a sale of the club to Greg Jamison.

Shortly after our post, the Goldwater president Darcy Olsen released the following statement:

“Although the Council approved an arena management fee in the budget Tuesday, nothing requires the Council to spend all or any part of it. The city could sign an arena management contract for less than that amount or for no amount at all if the city decides to manage the arena itself or put it out for competitive bidding. That said, we do believe this arena management fee is legally questionable if it is far greater than the value of the services to be provided. Additionally, Glendale taxpayers may choose to pursue future action to contest the fee by referendum. The Goldwater Institute cannot authoritatively comment on the legality of the deal until we and Glendale taxpayers can see the details. However, we are encouraged by reports that this deal will not include a massive up-front payment to help the buyer purchase the team, and we hope that the city will reach a deal that comports with the law and protects the interests of Glendale taxpayers.”

So basically Goldwater doesn’t have a problem with anything…yet. But if a $17 million payment is indeed part of the deal, Glendale better be prepared to justify it.

You have to laugh, really. A government praying nobody will stop it from handing millions of dollars to a private business. It’s pretty funny. Except for the taxpayers. Bit less funny for them.

  1. rainyday56 - May 23, 2012 at 7:19 PM

    Maybe the city would have been better off building a creaky nuclear power plant and a burning tire dump than that Jobing arena. Fewer headaches.

  2. danphipps01 - May 23, 2012 at 7:54 PM

    Somewhere, Gary Bettman is laughing.

  3. billlaforge22 - May 23, 2012 at 10:24 PM

    If this was a horse, they’d have shot it 3 years ago.

  4. jakpsu1 - May 24, 2012 at 12:19 AM

    Why not just have the citizens vote on if they want to help pay and keep the Coyotes or have the team move? But why would the government use common sense?

  5. proudliberal85392 - May 24, 2012 at 12:31 AM

    So, Goldwater is getting ready to f**k up another deal to save the Coyotes. Nothing this bunch of right-wing whack jobs does surprises me.

  6. flyerscup2010 - May 24, 2012 at 4:18 AM

    i’m still trying to just figure out what a goldwater institute is. do they like do anything besides sue the government (creating litigation fees that get passed on to taxpayers) for spending taxpayer money? i mean it’s a noble mission i guess but their methods just seem…very backwards.

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